An organization is assembling its enterprise risk register. Which of the following elements should be documented for each listed risk so the team receives an early warning when the likelihood or impact of that risk begins to increase?
A Key Risk Indicator (KRI) is a forward-looking metric tied to a specific risk. Tracking KRIs inside, or in direct association with, the risk register allows risk owners to spot deteriorating trends and take action before the threat reaches an unacceptable level. Items such as service-level agreements, memoranda of understanding, or general performance metrics do not fulfill this early-warning function within the risk register.
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What are Key Risk Indicators (KRIs)?
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How do KRIs differ from Key Performance Indicators (KPIs)?
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What is the significance of including KRIs in a Risk Register?